(CBS) — You don’t have to drop pennies in the proverbial piggy bank any more. Now, you can use apps and online banks to set up automatic savings.
CBS 2 Cost Cutter Dorothy Tucker shows you how.
Download Digit and start saving. Just connect it to your checking account.
Every day, Digit takes a few dollars and transfers it to a savings account. It pays a 1 percent bonus every year.
Another app – Acorns — uses your debit or credit card to save money.
“You purchase an item from, say, Starbucks for $5.50. It’ll round up to $6, take the cents and invest the difference,” says Larry Ludwig from Investor Junkie.
Stash away just 40 cents a day and in 10 years you could have nearly $4,000.
A third option: Chime. An online bank that rounds up purchase amounts and stashes the pennies in a savings account. You earn a 10 percent bonus on your weekly stash.
The savings can add up.
“Anywhere from a few hundred dollars to a few thousand dollars a year,” says Ludwig.
There are no fees for Chime.
Digit is free for the first 100 days but then $2.99 a month after that.
Acorns is $1 a month for accounts under $5,000 but free for college students for four years.